Caution . . . Credit

[bella]

Originally Posted by Cowboy Sailer

We only have and use Debit cards. We use one for living expenses, one for boat expenses and one for medical expenses. In all cases we keep the balance of the account very low and transfer in just enough to never go overdrawn.
Now to my questions: If we only use debit cards does that mean that we are not maintaining a good credit history?
Sometimes the merchant asks, "Credit or debit?" Sometimes they don't ask, they just run it as credit. Why? Does it make any difference in my credit history?

Yep it does... even if they run the debit card as "credit" it is not reported as a credit card. In fact I doubt it is being reported at all. I know my three debit cards are not. Two bank accounts and the trust account. I just called both USAA savings bank and my trust guy and they both said NO it is not being reported as they are "checking" accounts.

My suggestion to some of you is a Secured Account.. toss a couple of hundred on a secured card. It will give you a start on credit history... I think the US is the only nation that bases most of our stuff on 'credit'.

[Rhapsody-NS27]

I have a USAA debit also. I also have one of their credit cards too. Great company.

[maytrix]

Originally Posted by Kettlewell

My personal opinion is that when you go cruising you should maintain your financial life so that it basically looks like anyone else's. In other words, the stealth way to be a cruiser is to look no different on a credit report. Use credit cards, keep a bank account or two open, use a normal street address someplace as your "home" address, etc. I like to be able to come and go from the land world to the water world with the minimum amount of hassle, and that means having bank accounts, credit cards, etc. all working for me all the time. Why make more hassles for yourself by trying to live off the financial grid?

Good point.

You don't have to play the game, but if you don't, you DO have to live with the consequences.

This was an interesting read though as this was not something I'd ever thought of being an issue. My wife and I do intend to cruise in the future, but we hope to retain a small home in Vermont while we cruise and would likely come back for a couple of months in the winter - at least in the first few years of cruising where we expect to be in the Carribean. It seems that would be a huge benefit for us since it would still give us an address and we could just keep using credit as we do now paying it off monthly.

[Mike OReilly]

Originally Posted by DeepFrz

But this is the way the whole system is built. The land of free enterprise. If you think you are going to beat the banks, think again. Didn't a whole bunch of financial companies just bilk the American people out of billions of dollars with the aid of the elected elite? They have the power baby, and they ain't going to give it up.

Exactly right Deep. You cannot "win" by playing their game. They always win, b/c they've stacked the odds in their favour.

I agree, the easier path is to play their game and work hard to remain above water (i.e. pay things off immediately, don't buy with plastic what you can't buy with cash, don't be seduced by the glitter of...). BUT there is nothing wrong with choosing another path; of venturing off the path they want all of us to be on.

People like minaret, zeehag, bangkaboat and others on this list are doing it with their eyes wide open. They should be applauded, not slapped down and told to get in line like the rest of us. Just like cruising, they are choosing the path less travelled. Shouldn't that be applauded? And maybe, just maybe, we can all learn a thing or two from them.

After all, if we all stopped playing their game, it would have to change.

[Randyonr3]

Originally Posted by travler37

I have not read the whole,
Can you tell us why you came back instead of .....escaping is the best word i can come up with.Why did you come back to the states?
Mark

Mark
This area is our home, our kids and grand kids live here and we place a great deal of importance on being around for them for support.. A year or two out at a time suits us just fine.
And then we have also started a Hobby/Business with the canvas and upholstery shop within the last couple years, Its another way to supplement our retirement..
We still live on the boat, and are planning another trip out.. this time the wife will fly to the destination and I'll be taking the boat.. (transpac)

[Charlie]

Originally Posted by Mike OReilly

Exactly right Deep. You cannot "win" by playing their game. They always win, b/c they've stacked the odds in their favour.

I agree, the easier path is to play their game and work hard to remain above water (i.e. pay things off immediately, don't buy with plastic what you can't buy with cash, don't be seduced by the glitter of...). BUT there is nothing wrong with choosing another path; of venturing off the path they want all of us to be on.

People like minaret, zeehag, bangkaboat and others on this list are doing it with their eyes wide open. They should be applauded, not slapped down and told to get in line like the rest of us. Just like cruising, they are choosing the path less travelled. Shouldn't that be applauded? And maybe, just maybe, we can all learn a thing or two from them.

After all, if we all stopped playing their game, it would have to change.

I apologize to the Ghosts. If you feel like I insulted you with my post I didn't mean to. What I meant to infer was that there are different ways to take care of things. Some people don't mind living off the grid while others are doing the best that we can within the freedoms that we are allowed.

[travler37]

Originally Posted by Randyonr3

Mark
This area is our home, our kids and grand kids live here and we place a great deal of importance on being around for them for support.. A year or two out at a time suits us just fine.
And then we have also started a Hobby/Business with the canvas and upholstery shop within the last couple years, Its another way to supplement our retirement..
We still live on the boat, and are planning another trip out.. this time the wife will fly to the destination and I'll be taking the boat.. (transpac)

Thank you for the answer.Is interesting to me how people live both lives.....
Good luck on the transpac.
Mark

[ahnutts!]

After reading this thread I think it would be wise to keep a credit card and personal line of credit even if you don't use it. Find the ones with the lowest fees and never carry a balance. The cost of things seems to go up if you don't have credit. I was looking at pay-as-you-go cell phones the other day and it seems paying up front costs substantially more than being billed.

[DeepFrz]

CowboySailor; was a big surprise to me when I found out I had no credit history after only using a debit card for about 8 yrs. Your credit history only goes back 7 yrs. When the last rating rolls off the end your are out of the system and have no credit rating.

ahnutts!; you must use your card to keep your credit history alive. Just carry a zero balance each month. I have 2 cards now with no fees. Credit Unions for me from now on...

[osirissail]

Originally Posted by Charlie

A signature loan by definition is not attached to the equity of anything. It is just that I sign a document that says I am willing to pay you back.

Not quite true! As others have already mentioned. Signature Loans are often attached to your savings/checking accounts. I can get signature loans from my credit union up to the value of my share account. So it is the shares that are the "equity" for a signature loan.

[Kettlewell]

Yes, if you use them carefully credit cards can actually save you money. I don't know how many thousands of dollars I've gotten back from "cash back" cards over many years of paying everything that way. Plus, much safer to use a credit card instead of carrying around large amounts of cash. Here in the USA it can really cut way down on the need to obtain cash because you can use the card for practically anything. Plus, they are a great emergency tool. Let's say someone on your boat needs some complicated surgery and you want to go home, or there is a death in the family and you have to fly out tomorrow, or rent a car, etc. Those things are all made much easier if you don't have to scramble to get cash somewhere. Not to mention how much you can save by ordering stuff online. I've saved thousands of dollars doing that, and it is pretty hard without a credit card. Credit is a just another tool, and like all tools you can use it wisely or you can use it improperly. If you use it wisely it can make your life better.

[ahnutts!]

Originally Posted by DeepFrz

CowboySailor; was a big surprise to me when I found out I had no credit history after only using a debit card for about 8 yrs. Your credit history only goes back 7 yrs. When the last rating rolls off the end your are out of the system and have no credit rating.

ahnutts!; you must use your card to keep your credit history alive. Just carry a zero balance each month. I have 2 cards now with no fees. Credit Unions for me from now on...

I have an RBC card with all the bells and whistles. I book vacations, rental cars etc. to take advantage of cancellation insurance and car insurance, and I pay my moorage and storage unit on it. It also gives me 30 days medical insurance for travel. The card I have is no longer issued and I won't give it up. I think its hard to find a card that gives 30 days medical now and I have made a medical claim in the past so I've already gotten my money's worth. Its quite surprising to us hicks in Canada how much an ambulance ride costs in the good ole US of A

[Therapy]

Originally Posted by travler37

Or plan B,
Reminds self that the american dream is gone and you will work till your dead if you stay here unless your a government worker.
reminds self the the difference between Ss and a Ponzie scheme is.....cant figure that out.Take my money and leave a IOU...But still am taxed 13% for a broke sysetem....if you dont understand that ask yourself why when i statrted paying into it i could draw a partial at age 52.....full at 55.Now i can not draw till age 67.
yup,i complain since i was first introduced to the said scheme.And have built my credit rating,learning how to play the system.and when i nail my card to the dock i hope they spen alot trying to find me.
Yup,
I am COMPLAINER for my entire life.Since my first on the table job at age 15.Never drawing unimployment but still being TAXED for it so government contracted road workers coul draw it and go south for the winter because they worked ther 39 weeks and had a rehire slip.....
yes i have ben a COMPLAINER for my entire life.and now watch the country of my birth disolve.As the players of the system wonder what happened and why there kids life SUCK......
A rant....thank you for letting me vent.
Mark

Barkin' Fastards.
I'm a complainer too.
The "stuff" that is happening is not my fault but I am being dragged down with it.